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    Car purchase and existing finance advice needed.

    Just seen a car I want to buy and have agrred a figure with the seller BUT the guy has said he can't go lower because he needs £x to settle outstanding finance so he can go for another car.

    My question is how do I buy this car off him AND make sure that he DOES actually settle up with finance company? Can I just get him to sign the car over then phone the finance co. and pay it off with my own Credit card then give him the difference as cash or is there another way? Or is he up to something?

    14 Comments

    If you are worried then don't buy it from this geezer. If in doubt walk away, there are plenty of other used cars out there similar to the one you are interested in.

    Warning bells all round this, walk away you'll only cry later on.

    The car has outstanding finance, so its nots his car to sell.
    You can;t be sure he'll pay off the finance with the money you give him and you could end up with the car repossessed by the finance company.
    Personally Id walk away, and buy a different car.

    Get a HPI check and this will tell you if there is outstanding finance on it - for all you know he may be saying that just to keep the price up ... or he could have a personal loan on it ... once you know for certain then you can decide if it's worth the risk or not.
    Edited by: "vraptorchick" 10th Apr 2011

    if it is on finance and i cant remember which , its ether after a 3rds been paid or a 3rds left to pay , they have to chase him for the money and cant take the car

    google is your friend

    do the hpi check, not expensive and certainly worth the peace of mind, if anything is outstanding word to the wise, don't buy it!!!

    Walk away... why have all the bother

    If the car is the best you have seen for the price it is not a deal breaker that there is still finance outstanding - adds an obstacle to the purchase but can be overcome. At least the guy has been completely upfront that there is outstanding finance - lost count of the number of times I have agreed to buy cars after seller stating car was bought for cash but after conducting an HPI check finding out there is finance outstanding.

    Why don't you sit down with the guy at his house and look over the paperwork for the finance company - get him to call them with you listening in and get him to request a settlement figure. Once happy with this, you can arrange to pay the finance yourself by Credit/Debit Card over the phone, or, even better, a lot of these companies might have local offices you can pop into and pay directly and get a receipt immediately - the finance company can send you and the seller a letter confirming the finance is now clear. This can take up to a month to show on a new HPI report but as long as you dont intend selling on before then it is not a major problem.

    Not exactly completely straightforward but I have done this myself a couple of times and as long as the deal is the best you have seen then it might be worth the extra inconveniance. However, you need to be entirely comfortable with the seller and with what you are doing - if you have doubts and the deal is not brilliant then just walk away.

    Banned

    Shouldn't make the slightest bit of differance....get a receipt for the cash and give a receipt for the car and keep a copy.....the car is yours and not the finance companies.

    Banned

    The Consumer Credit Act 1974 gives ‘good title’ to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous, unpaid hire-purchase agreement. This means that the finance company is not entitled to repossess the car from you

    Done this before, i paid the finance company direct the money owed on the car then the balance to the seller.

    Original Poster

    Guys Thanks for the replies, I am going to enquire a little further to find out how much is outstanding, then if the Finance Company is happy for me to settle and take ownership I may go for it. Definitely will do a HPi report first though.

    Banned

    slamdunkin

    The Consumer Credit Act 1974 gives ‘good title’ to the innocent private pu … The Consumer Credit Act 1974 gives ‘good title’ to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous, unpaid hire-purchase agreement. This means that the finance company is not entitled to repossess the car from you



    its not quite as simple as that. If the buyer knows there is finance then they can still repossess

    slamdunkin

    The Consumer Credit Act 1974 gives ‘good title’ to the innocent private pu … The Consumer Credit Act 1974 gives ‘good title’ to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous, unpaid hire-purchase agreement. This means that the finance company is not entitled to repossess the car from you



    The important word here is "innocent". If the buyer knows, or is led to believe, that there is outstanding finance then he is not innocent.
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